What do you think about automated crypto savings plans on exchanges?

So, if you think the DCA investment strategy is kinda off, have you thought about whether the exchange wallets you’re using might offer some cool features for automatically saving crypto assets? If you want to save more effectively and build up a significant amount of funds over time by investing, diversifying, or reinvesting for the future, then checking out those upgraded automatic savings options on exchanges could be a smart move, or even a DCA approach that fits your style. What’s your take on using these automated crypto savings plans on your exchange instead of just DCAing?

There is nothing wrong about having this automated savings plans. For me it’s still simply as a manual DCA where you buy the coin at certain price yourself, but the automated actually buy your coin at certain prices without you having to buy it manually, this is like actually using limit order on certain price ranges and it triggers when the this prices are hit. The major problem why many investors prefers the usual DCA is simply because you need to have your asset in centralized exchange or online platforms that do allow this automatic savings and this is one thing no actual investors will do. Offline storage will be defeated just like in staking of your coins, the risk is definitely high in my opinion

I believe that requires that your money is under the custody of "your exchange"? If that's the given situation, then in my personal opinion - AVOID! But if you're will to accept the trade-off, and that you believe that would earn you more than mere HODLing Bitcoin in your own custody, then OK. 👍

I have seen this on exchanges before. Bots are used for it and are also for the purpose of DCA. Because you will set the bot to be buying the coin for you every week or so. I see it as laziness. I prefer the manual in which I will be buying the coin buy myself.

So you are referring to something called SIP or Systematic Investment Plan. Isn't it? Here specific amount of money will be interested on your chosen cryptocurrency at a regular interval. It's a good thought. I don't think any exchange is offering that kind of plan yet. This kind of approach usually helps to build weath over a period of time. It's a disciplined approach for long term wealth creation. Go for it!

I don't think giving a centralised system full control over your funds is ideal. I'll rather continue to accumulate bitcoin using DCA as it has been working for a lot of investors over time. Those features are used by investors who doesn't care how they manage their funds. It's better to know how your funds are been managed and so you can access them any time you wish to. I've come across such on my exchange app. But then I consider my exchange app just for trading and not to store funds.

We do always have that very basic and common or golden rule on crypto space is that "NOT YOUR KEYS NOT YOUR COINS"..No matter on what would really be the features on which these platforms do have on which as long you dont have the keys of such wallet then you are really that still on big risks and this is something which isnt really that recommended at all. This is why its always been best that you should really be that mindful about having that 100% security of your coins and it will really be that better that you should really be sticking into your old traditional ways on DCA'ing. You can buy coins and transfer it out into your non-custodial wallet. If you do have some coins which are intended for short term trade then you should be separating it into your long term coin hold. Somehow it is really that great to see these features into your beloved exchanged. If you do have that confidence and do have that trust into the platform or company then it will really be that up to you. Just make it sure that you do able to handle up the risks.

I think its a no-no for me every time I see the word Auto in features. Because it also means you have no control over it. If you want to DCA, then just do it manually as you are comfortable doing it than having to trace it back when you find out you lost money. Is there really an exchange offering this service? I'm not aware if there is, I'm always logged in binance but I haven't read anything they offer as such.

What I notice from this strategy is that exchanges are coming up with a strategy which their customers will leave money in their custody, and it has been said multiple times here that we should trust exchanges with our money, anything can happen to the exchange at any moment, and you might end up losing your money. Don’t think an exchange is too big, and nothing will happen to the exchange, we should know that no exchange is too big to be compromised. When we are investing, or making any savings plan, then we should always make sure we are in control of our money, don’t leave your funds with a third party because anything can end up happening to it. So am not really in support of the savings strategy, exchanges are just doing what’s going to favor them.

And the interesting thing is that if anything should happen to your funds in a centralized exchange they don't have a choice but to be responsible for your money, and most of them give a very good offer just that it will be better to buy a coin and leave it in a wallet because when complications come on an cex exchange and DCA is one of the best strategy to adopt when it comes to bitcoin and every investor will actually record a DCA method. And when you know how to manage your resources it makes things easier for you because this is the reason why people succeed because they have a plan drafted out already to improve their investment and Bitcoin has given that opportunity for everyone to invest and hopefully when you have patience and you can actually wait for years then you will eventually enjoy the fruit of your labor and this is why before you start investing you would have heard people calling a long time investment.

Getting used to the DCA strategy will help you not to become dependent on any exchange to help you with any automatic crypto assets saving plans. If you let yourself become dependent on an exchange you may forget yourself and start keeping your savings that is your investment on the exchange instead of the cold wallets which is a mistake many investors have made in the past and regretted it. Getting used to DCA early is important for investment future.

Right now, I have 1 DCA bot that has been running for more than a month, and it just buys Bitcoin. For me, it's one of the best features of an exchange, but since the "not your keys, not your coins", I am limited to using a small amount of money in exchange, and torn between whether I will withdraw my Bitcoin from the exchange.

My experience with auto features on a platform is terrible, so I'd avoid it even if the exchange promised to repay me 200% if they went bankrupt. The last time I used auto-buy like this, it failed to process my order and it's stuck on the platform for days. I don't want to waste my time arguing with clueless customer support, so I'd rather buy it manually. Doing it monthly or weekly is not a big deal IMO.

Well I'll say for me it's a good idea though and it makes a lot of sense by making sure one achieve their goals of accumulating some amounts of money during the process. I do it sometimes and I know how much it did a great deal in helping me in the long run, cause most times it skipped me that I'm on automatic crypto savings plan and before I know it have saved up so much,come to think of it i even preferred it to DCAing.

This can be good for those investors that often forgets to DCA manually for various reasons because in this way, the EXCHANGE itself will be the one that will buy it for you as long as you set the parameters. On the flip side, there's one big question on it. Knowing that storing your assets in your exchanges isn't recommendable, do you really think that it's worth the risk? I mean we know that anytime, a Centralized Exchange can get hacked, and you might lose your funds faster than you expected. I mean for me; I'd rather put it on a wallet that I have control over with and will just set an alarm on my phone. That way, my assets will be more secured. The feature itself is a good thing though and it attract some investors to store their assets on their platform, but I wouldn't recommend it especially if you're storing very large amount of assets.

when it comes to thing like this always better to have control yourself, doing DCA you literally need to press few button to buy manually every once in a while. I won't use these feature, because I still don't know the underlying risk and i'm too paranoid to think that exchange really doing this for me without benefiting themselves . when exchanges are slick with the conversion rate and all in feature like instant conversion, I'd always have my doubt that they might do the same to these feature, so I better avoid. manual DCA is the way.

I believe if the service incentivizes a user for taking a risk for holding your Bitcoin under their custody, then it's probably OK to take that trade-off for a small amount of your total capital. BUT the incentive should definitely be worth the risk, and this not merely in my own "personal opinion". This should be a FACT, and personally I would never take any risk with holding my Bitcoin with any service unless it's at the least giving me a good annual interest percentage. Perhaps 50%.

Perhaps you could have a cold wallet for DCAing BTC and also try to understand the mechanics of using the automatic save and earn plans on your secure exchange with some other trial fund that may still be BTC or a trading pair  worth the time and effort. Am sure there would be better insight as to which of the two methods of saving between DCAing BTC and save to earn plan on your exchange, would be more beneficial in the long run. Still, there isn't any guarantee that you would make about 50% interest on any exchange I know of right now, by just saving to earn or just auto savings for diversification in the nearest possible future.

Interesting! It's a nice planned idea but before then did you thought about the famous crypto phrase "not your keys not your coins"? Because that's where it gets uninteresting that I should have a large portion of my bitcoin holding in centralized exchange through some automated savings features they provide. If building my bitcoin portfolio manually is now being manipulated to look like a burden by these CEX's then that's the necessary burden I'll rather bear than risk having my coins largely stored in a CEX. Newbies, make sure to self custody your coins with one of the best in-class wallets, (cold or hot).

If you are really that serious with your DCA thing then you cant really be able to miss it up or something we should say that you will be always that updated on the current market price on which means if you do have that money or stablecoins into your exchange platform then you can always have those buybacks and then store it up into your cold wallet. For some savings plan on an exchange then it will really be that not a bad idea to make use of it or would be able to utilize. There are really just that those people will really be that always skeptical when we do already compromise security issues with our coins on which this is really that outmost important specially for long term holding. It well be just that basing into your own liking and risks taking whether you will be that just fine with this set up or not. ^50% Annually? If they could be able to offer such incentive for a year then i might consider but only into those coins on which are really just that good for that particular point and wont really be putting up all the Bitcoin stash i do have just to get that incentive. We are really that skeptical on every move that we do because we are talking assets which do have value on here. We are all wary about this basic security of our coins but due to some opportunity and other perks on which we can get or able to obtain something, then this is where we do decide on disregarding that risks first and would be tending to dive in on that opportunity. When you do have that savings plan somehow is that if that feature is really that automatically saves up and act as a DCA thing then its good because once it do accumulate without much thinking on which later on it will really be something significant.